CONVERTING SOLE PROPRIETORSHIP TO LLP

WHAT IS A LIMITED LIABILITY PARTNERSHIP?

Incorporation of a Limited Liability partnership is a new structure brought into existence by the LLP Act, 2008with an intention to give flexibility to the existing partnership firms to convert their business into a Legal Entity or to the new businesses deriving to become a Legal Entity where the Liability of the Partners is Limited to the agreed contribution that they have in the Company in accordance with the agreed terms of all the partners penned down in LLP Agreement.

THE PROCESS FOR CONVERTING A SOLE PROPREITORSHIP TO A LIMITED LIABILITY PARTNERSHIP:

OBTAINING DIN AND DSCFirst the proprietor has to obtain the Director Identification Number and the Digital Signatures Certificate to move to the next step of conversion.

APPLYING FOR THE NAME APPROVALName approval form has to be filed after obtaining DIN and DSC to get LLP incorporated as per the procedure of MCA.

FILING FOR THE CONVERSION OF THE SOLE PROPREITORSHIP TO LLP

FILING OF FORM 2 AND FORM 3 OF THE LLP As per the incorporation process of LLP, Form 2 and Form 3 of the LLP has to be filed.

DRAFTING THE LLP AGREEMENT LLP agreement is the agreement between the partners to the LLP in which the partners mutually decide upon the amount that they agree to put into the company and the liability of the partners is limited to only the agreed amount.

GETTING THE INORPORATION CERTIFICATE FOR LLP AFTER THE SUCCESSFUL CONVERSION

LLP is incorporated as per the process and the incorporation certificate is obtained.